The American Families Plan Tax Compliance Agenda aims at fixing the “tax gap”—the difference between the federal government’s expected and actual revenue each year—so that President Joe Biden can fund new programs, Axios reported.
As part of the agenda, the IRS will receive $80 billion in additional funding each year to imrpove technology and data analytics, to hire new tax collectors, and to train them in technical enforcement methods.
The plan will also try to increase accountability from big banks and penalties for tax evasion.
“According to Treasury analysis, the tax gap totaled nearly $600 billion in 2019 and will rise to about $7 trillion over the course of the next decade if left unaddressed—roughly equal to 15% of taxes owed,” according to the report.
The Treasury report said that compliance efforts will not target workers who file W-2s because “roughly 99% of taxes due on wages are paid.”
The IRS initiative will ensure full tax payments for “less visible sources of income,” where compliance currently stands at 45 percent.
The report states that non-compliance “decreases the progressivity of the tax
code since the benefits of noncompliance accrue disproportionately to top earners.”
Americans for Tax Reform noted that the tax compliance agenda will benefit the far-left National Treasury Employees Union because it will collect dues from 86,852 new unionized employees.
The union currently has about 150,000 members.
ATR estimates that if the new employees all join the union, then it will receive an additional $33.3 to $47.9 million per year.
The NTEU PAC gave 97 percent of its money—about $590,000—to Democratic campaigns during the 2019-2020 election cycle.
“The $80 billion Biden IRS bailout is just another way to funnel taxpayer money to progressive candidates and causes,” ATR wrote in a press release.